Recent Updates

The Internal Revenue Service (IRS) published Publication 503 for use in preparing 2022 tax returns, which describes the tests a taxpayer must meet in order to claim the credit for child and dependent care expenses and explains how to calculate and claim the credit.

The Internal Revenue Service (IRS) has released the latest version of Publication 502, which describes what medical expenses are deductible by taxpayers on their 2022 federal income tax returns. This publication provides guidance on what qualifies as a medical expense under Code § 213(d) and helps identify the expenses that may be reimbursed or paid by health flexible spending accounts (health FSAs), health savings accounts (HSAs), or health reimbursement arrangements (HRAs), or covered on a tax-favored basis under other group health plans (e.g., an employer-sponsored medical plan).  

The federal Fair Labor Standards Act (FLSA) requires that employers pay most employees at least the federal minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023.

The following states or localities have announced new minimum wage increases.

Dealing with difficult employees can come with running a business. While it may be tempting to ignore these issues and hope they resolve on their own, without intervention, they can — and often do — get worse. To help you address difficult situations, here are some examples of employee challenges and guidelines for helping employees get back on track.

The following chart shows the current minimum wage for non-tipped and tipped employees and the next scheduled increase (if any) for each state, the District of Columbia, various U.S. territories/commonwealths and numerous local jurisdictions.  Rates listed in black were enacted by federal, state, district, territory or commonwealth law. Rates listed in red were enacted by city or county ordinance. It is important to note that minimum wages that may be paid to individuals under a certain age (e.g. youth wage), to employees during a “training” period, or to employees working for a non-profit are not reflected.

California has enacted Senate Bill 1162, which amends the requirements for employers regarding pay transparency and pay data reporting. Senate Bill 1162 takes effect Jan. 1, 2023.  ADP is in the process of reviewing our reporting capabilities to help support clients who need to retrieve employee-level data necessary to file a pay data report.     

The following states or localities have announced new minimum wage increases.

Misclassification of employees as exempt from overtime is one of the most common Fair Labor Standards Act (FLSA) violations and a focal point for government enforcement. Below are eight red flags that an employee is (or may be) misclassified.

When employees fail to report for work without prior notice ("no call/no show"), they can leave employers scrambling to find a replacement. After a number of no calls/no shows, many employers will consider the job abandoned. To address this, employers often include job abandonment guidelines in their attendance policies. Here are some points to consider when drafting and enforcing these policies.